acct301_week_7_homework
| Problem 2 | |||||
| Required:Compute the average annual cash inflows. (20 points) Compute the payback period using the accumulation method. (20 points) |
|||||
| (40 points total) | |||||
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Incremental revenue | 6,000 | 2,000 | 4,000 | 2,000 | 1,000 |
| Cost of new machine | 12,000 |
| Problem 1 | |
| Required: In the space below, describe the net present value method of capital budgeting. |
